Latest news with #GoodLeap
Hindustan Times
10-07-2025
- Business
- Hindustan Times
The Wall Street Machine for Financing Rooftop Solar Is Seizing Up
Surging defaults on loans used to buy residential solar panels are cascading through Wall Street, catching bond investors and private-credit funds in their wake. Some bonds tied to GoodLeap, a financial-technology firm that lends money for solar installations, have stopped paying interest, people familiar with the matter said. The payments stopped because far more homeowners are defaulting on the loans than initially forecast, they said. Solar bonds are one niche in the growing ecosystem href=" data-vars-anchor-text="built by nonbank lenders">built by nonbank lenders like GoodLeap, which use artificial intelligence and financial-market expertise to let Americans borrow with a click of the mouse. The 'fintechs' connect consumers with debt investors eager to lend to them, but higher interest rates have pushed loan payments up and more borrowers are falling behind. About 50,000 U.S. homes had solar panels installed last year, up from about 14,000 in 2019, according to the Solar Energy Industries Association. Falling panel prices fueled the surge, but so did easy credit. GoodLeap and competitors like Sunnova Energy International and Mosaic funneled loans to homeowners through local dealers who sold panels door-to-door. Now cracks are starting to spread through the network, showing how the potent combination of private-credit and complex bonds can backfire. Several GoodLeap competitors filed for bankruptcy court protection in June, and some bonds backed solar loans trade at deep discounts. 'I should never have been approved for a loan to begin with,' said Donna Nash, an office administrator who bought rooftop panels for her home in Sarasota, Fla., in 2023 with a GoodLeap loan. She was making $45,000 a year at the time, but a salesman for Sun Energy, a dealer, told her that he could get her a loan for the purchase, which would cut her power bill and make her eligible for a big tax credit, she said. The first lender the salesman approached rejected Nash, but GoodLeap approved her for a $48,000 loan with a $150 monthly payment that would step up to $210 if she didn't use the tax credit to pay down her balance. After installation, she learned that she still needed to pay Florida Power & Light $30 a month and that she made too little income to claim most of the tax credit. She filed for bankruptcy protection in July 2024 but initially kept paying off the loan. 'I struggled with it, 'Do I pay? Do I not pay?'' Nash said. Two months later she stopped paying GoodLeap. 'If they come and take the panels I'm fine with that. I feel like I can finally breathe again.' GoodLeap doesn't keep any of the loans it makes, acting instead as a middleman that profits off fees charged for making and servicing the loans. The company is profitable and has pivoted to lending for home improvements such as heat pumps and energy-efficient windows, a GoodLeap spokesman said. The strategy helped GoodLeap avoid bankruptcy, unlike competitors who remained focused on solar. Most GoodLeap solar bonds still pay interest and are valued at 90 cents or more. The firm finances the loans with borrowed cash, then quickly repays its debts by selling the loans to banks and private-credit firms such as Blackstone. Many buyers of the loans—though not Blackstone—paid for them with money raised by bundling them together into 'asset-backed securities,' or ABS. Those are bonds guaranteed by the future payments the homeowners make on the loans. That strategy boosts returns if homeowners pay on time and worsens losses if they don't. The financing machine kicked into high gear when interest rates fell during the pandemic, and GoodLeap attracted tech investors such as Michael Dell, who valued its business at $12 billion. Banks such as Goldman Sachs, Citigroup and Credit Suisse sold $5.7 billion of GoodLeap solar bonds to investors, according to ABS data provider Finsight. Credit-rating companies Fitch Ratings and KBRA gave most of the bonds investment-grade ratings based on analysis of similar deals backed by other consumer debt. When interest rates jumped in 2022, so did the cost of the solar loans. Goldman sold $2.25 million of bonds backed by GoodLeap loans to an investment firm called the Catholic Responsible Investment Funds for nearly 100 cents on the dollar in 2022, according to analysis by The Wall Street Journal of data from Empirasign Strategies. Cumulative losses on the bonds rose to 3.65% in 2024, then nearly doubled this year to 6.3%, one of the people familiar with the matter said. Traders recently quoted the bonds at 42 cents, according to Empirasign. A spokeswoman for Catholic Responsible Investment declined to comment. 'It was a brand new product…and people made good faith estimations, I suppose, of what default curves would look like and they happened to be worse,' said GoodLeap Chief Financial Officer John Shrewsberry. The firm is engaging with bondholders and trying to maximize their returns, he said. Like other asset-backed securities, solar bonds are split into levels, or tranches, made up of pools of thousands of loans. Investors in the highest tranches get priority on payments and if defaults climb above preset thresholds, interest payments to the junior tranches stop. Several bonds were close to breaching their thresholds earlier this year, but GoodLeap repurchased defaulted loans from the pools, preventing their triggers. By June, four bonds had defaults in excess of their thresholds, including the one owned by Catholic Responsible Investment. With no further buybacks, the interest payments halted. 'It doesn't help us to have securitizations that fail to live up to the risk expectations [set] when they were created,' Shrewsberry said. 'We're going to do everything we can.' Write to Matt Wirz at
Wall Street Journal
10-07-2025
- Business
- Wall Street Journal
The Wall Street Machine for Financing Rooftop Solar Is Seizing Up
Surging defaults on loans used to buy residential solar panels are cascading through Wall Street, catching bond investors and private-credit funds in their wake. Some bonds tied to GoodLeap, a financial-technology firm that lends money for solar installations, have stopped paying interest, people familiar with the matter said. The payments stopped because far more homeowners are defaulting on the loans than initially forecast, they said.
Yahoo
03-06-2025
- Business
- Yahoo
KBRA Assigns Preliminary Ratings to GoodLeap Home Improvement Solutions Trust 2025-2
NEW YORK, June 03, 2025--(BUSINESS WIRE)--KBRA assigns preliminary ratings to three classes of notes issued by GoodLeap Home Improvement Solutions Trust 2025-2 ("GDLP 2025-2"), a $354.795 million asset-backed securitization collateralized by a pool of residential home improvement loans originated by GoodLeap, LLC ("GoodLeap" or the "Company"). The preliminary ratings reflect the initial credit enhancement levels ranging from 19.32% for the Class A notes to 4.95% for the Class C notes as a percentage of 95% of the pool balance. GoodLeap is headquartered in Roseville, California and offers its home improvement loans at the point-of-sale to mostly prime credit quality homeowners through its partnerships with more than 4,000 active installers. The home improvement loans are used to finance sustainable projects such as LED lighting, heating venting and air conditioning (HVAC), home performance upgrades, windows and doors, water efficiency, generators and roofs. GoodLeap offers standard installment loans as well as promotional loan repayment products that allow the borrower to make lower monthly payments during the initial loan period. The collateral pool of GDLP 2025-2 will include approximately $391.0 million of home improvement loans where approximately 28.8% of the pool has a promotional period. KBRA applied its Consumer Loan ABS Global Rating Methodology as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In applying the methodologies, KBRA analyzed GoodLeap's portfolio pool data, underlying collateral pool and proposed capital structure under stressed cash flow assumptions. KBRA considered its operational review of GoodLeap, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing. To access ratings and relevant documents, click here. Click here to view the report. Methodologies ABS: Consumer Loan ABS Global Rating Methodology Structured Finance: Global Structured Finance Counterparty Methodology ESG Global Rating Methodology Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009740 View source version on Contacts Analytical Contacts Michael Polvere, Director (Lead Analyst)+1 Vicky Xiao, Senior Analyst+1 Melvin Zhou, Managing Director (Rating Committee Chair)+1 Business Development Contact Arielle Smelkinson, Senior Director+1 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
03-06-2025
- Business
- Business Wire
KBRA Assigns Preliminary Ratings to GoodLeap Home Improvement Solutions Trust 2025-2
NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to three classes of notes issued by GoodLeap Home Improvement Solutions Trust 2025-2 ('GDLP 2025-2'), a $354.795 million asset-backed securitization collateralized by a pool of residential home improvement loans originated by GoodLeap, LLC ("GoodLeap" or the "Company"). The preliminary ratings reflect the initial credit enhancement levels ranging from 19.32% for the Class A notes to 4.95% for the Class C notes as a percentage of 95% of the pool balance. GoodLeap is headquartered in Roseville, California and offers its home improvement loans at the point-of-sale to mostly prime credit quality homeowners through its partnerships with more than 4,000 active installers. The home improvement loans are used to finance sustainable projects such as LED lighting, heating venting and air conditioning (HVAC), home performance upgrades, windows and doors, water efficiency, generators and roofs. GoodLeap offers standard installment loans as well as promotional loan repayment products that allow the borrower to make lower monthly payments during the initial loan period. The collateral pool of GDLP 2025-2 will include approximately $391.0 million of home improvement loans where approximately 28.8% of the pool has a promotional period. KBRA applied its Consumer Loan ABS Global Rating Methodology as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In applying the methodologies, KBRA analyzed GoodLeap's portfolio pool data, underlying collateral pool and proposed capital structure under stressed cash flow assumptions. KBRA considered its operational review of GoodLeap, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing. To access ratings and relevant documents, click here. Click here to view the report. Methodologies Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009740
Yahoo
13-05-2025
- Business
- Yahoo
Houston man claims illiterate stepfather with memory loss issues was scammed into $98K solar panel debt
Isable Aguirre, a 72-year-old Houston resident, can't read or write and speaks only Spanish. The senior also struggles with memory loss. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) His stepson thinks these factors made Aguirre the perfect target for unscrupulous solar panel salespeople who left him in massive debt, according to a report from KPRC 2. The senior said he doesn't remember signing consenting or signing to buy solar panels that have been installed on his house since 2023. But his stepson, Oscar Garcia, believes that's exactly how the trouble started. 'Even if you come to his house and tell him, 'Hey, sign this and sign that,' he will sign it,' Garcia told KPRC 2. 'And then next time he's like, 'What did I sign?'' Aguirre recalled, 'I clearly told them I didn't want that, and they ran away.' But now, he has solar panels sitting on his roof, locked and inactive. No payments have been made on them, but he is staring down nearly $98,000 in debt. Garcia said a lien has been placed on his stepfather's home. Aguirre has lived in his Northside Village home for more than 15 years, and relies solely on Social Security for income. According to Garcia, the sales team pitched a too-good-to-be-true story: 'They were telling him something about that, I think Medicaid was going to pay for them or his Social Security was going to pay for them.' Garcia wasn't present when the deal went down, but a contract he shared with KPRC 2 names Texas Energy Resources Innovation as the contractor, and GoodLeap as the loan company now charging Aguirre. Texas Energy Resources Innovation is not Better Business Bureau accredited and has an F rating for failure to respond to 15 complaints filed against it. GoodLeap is BBB accredited and holds an A rating, but it's also racked up over 1,000 consumer complaints in the last three years. The company was also named in a 2023 lawsuit by the Minnesota Attorney General, accusing it and three others of 'making misrepresentations and engaging in other deceptive conduct while marketing their loans to prospective customers.' According to a report from non-profit Texas Appleseed, solar-related consumer complaints to the Texas Attorney General's Office jumped a massive 818% from 2018 to 2023. Read more: BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis 'Many of the harmful practices targeted older Texans and people who are not native English speakers,' it said. 'These practices included misleading statements that residents would no longer receive electric bills after panels were installed, false promises of government tax credits, and forgeries of signatures or other deceptive practices used to execute financing contracts.' Common complaints included defective or damaged goods, problems with sales practices, failure to provide repairs, and unsatisfactory workmanship. In about 8% of cases, customers said they were billed for equipment or services that they never received. Forty-two percent of the complaints involved solar loans, and another 11% mentioned leases, which are the two most common ways people pay for residential solar. GoodLeap and Solar Mosaic were the lenders most commonly cited in the complaints. Lawmakers are paying attention. House Bill 1640 would require the Public Utility Commission of Texas to create a consumer guide for going solar. Meanwhile, Senate Bill 1036 aims to create a regulatory framework to protect consumers. Thinking about going solar? The Federal Trade Commission (FTC) warns that solar scams can begin with a phone call, a message on social media, or a simple knock at the door. Here are some things to keep in mind when dealing with solar salespeople: There's no such thing as free solar panels, even if someone claims the government will cover the cost under a special program. Salespeople may exaggerate or lie about rebates, tax credits, or utility incentives that you can receive. Make sure to do the research and verify these facts yourself. Don't get pressured into signing on the spot or paying upfront or immediately. Promotional rates or short periods of relatively low payments are often used to mask the true cost. Solar can save money, but only if the deal is real and right for you. With the solar industry growing fast, it's more important than ever to read the fine print, check company credentials, and never rush into a deal, no matter how sunny it sounds. Vist the the U.S. Department of the Treasury's Consumer Solar Awareness website for more useful information and guidance to avoid scams. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
